“A Lawyer Who Tries to Block Settlements”

The Sep. 21 issue of Forbes magazine, now on newsstands, has a lengthy profile by Dan Fisher of my founding of the Center for Class Action Fairness, complete with a photo of my ugly mug gracing the story.

Of interest is a new revelation in the infamous Toshiba class action:

After few consumers availed themselves of a $2 billion settlement over supposedly defective laptop computers in 2000, for example, Toshiba America handed $353 million to a Beaumont charity whose chairman was plaintiff attorney Wayne Reaud, the lawyer on the case. Six years later the charity was still sitting on $250 million and the Texas attorney general sued for breach of fiduciary duty, including paying its president, W. Frank Newton, $560,000 in 2004. Newton is the former president of the State Bar of Texas.

Filed under: CCAF, class action settlements, class actions, cy pres, ethics, South Texas, Ted Frank

Blogosphere reaction

Larry Ribstein and Alexandra Lahav comment favorably, as does the pseudonymous “Kat”, and Scott Greenfield semi-snarks about my new job.

Filed under: CCAF, on other blogs, Ted Frank

Heritage panel on preemption

I may have a new job as what David Lat calls the “Class Action Avenger” and a new blog to go with it, but that doesn’t mean I won’t be speaking about more general legal reform issues. A Heritage Foundation panel on preemption, featuring Kyle Sampson, former NHTSA and DOT general counsel Jeffrey Rosen, and myself is now viewable online. It’s only fair to note that I cribbed a lot from Michael Greve’s Bradley Lecture on federalism (video), which I can’t recommend enough.

Filed under: CCAF, federalism, preemption, Ted Frank

July 8, Washington DC

The Center for American Progress is hosting two panels on the topic “Legal Services for the Poor in an Economic Downturn,” this Wednesday, July 8. I’m on the first panel with Peter Edelman and Don Saunders from 12 to 1. A “light lunch” will be served at 11:30. I’ve spoken before on this topic in rooms where I was the only person on the center-right, but it’s always nice to see a friendly face.

Filed under: pro bono, Ted Frank

Bluetooth class action update; new blog

Those of you who remember my earlier posts about the settlement and my brief on behalf of objectors might be interested in seeing the briefs that putatively settling plaintiffs and defendants submitted in support of the settlement.

So as not to clutter Overlawyered with these posts, I have started a new weblog focusing on my class action work. You can also keep up with this work by becoming a Facebook supporter of the Center for Class Action Fairness.

Filed under: about the site, CCAF, class action settlements, class actions, cy pres, Ted Frank

Monday on the Hill: Justice Delayed, Justice Denied?

I’m speaking on the Hill this Monday along with Robert Alt of Heritage and Ken Boehm of the NLPC on this topic. Monday, June 22, 2009, 12:30 – 1:45 pm, Room B354, Rayburn House Office Building. “It may be an old legal cliche, but several pending cases that have been remanded by the Supreme Court raise the question of whether we face this problem today. Please join our distinguished panel for a lively discussion on several cases that have clogged court dockets in an effort to determine if this old legal cliche is, in fact, true.” And “Food Will Be Served.”

Filed under: Supreme Court, Ted Frank

For New York-area readers: on WOR radio, 7:10 AM Wednesday

I’m scheduled to be on the John Gambling show on WOR-710AM at, er, 7:10 AM on Wednesday the 3rd, discussing my recent Congressional testimony on the costs of the litigation system.

Update: a podcast of the segment is available under “June 3” on the WOR website.

Filed under: nonmonetary costs of litigation, on TV and radio, Ted Frank

“A Stimulus You Can Believe In”

I summarize my recent testimony on the Hill in today’s American:

As I discussed in recent testimony on Capitol Hill, if one takes conservative estimates from these economic studies and adds it all up, the total cost to the economy from excessive litigation can be estimated to be between $600 billion and $900 billion a year, the vast majority of which is simply wealth destruction. That is between 4 and 6 percent of GNP, a tort tax of between $8,000 and $12,000 a year for an average family of four.

The entire hearing is on YouTube, or you can watch a highlight reel.

Filed under: nonmonetary costs of litigation, Ted Frank, tort reform

Wherein I become a three-continent pundit

I was given the opportunity to be on a public-affairs-in-America program on Press TV, the English-language Iranian television network, yesterday. The majority of discussion was on economic issues, but I do get to comment on a number of counterproductive laws Congress seems intent on passing this term. The program is available on line.

Filed under: on TV and radio, politics, Ted Frank

Trial lawyer earmarks: ending deductions for punitive damage payments

One can certainly see why ending tax deductions for punitive damages is a superficially appealing idea.

But the main effect will be to increase settlement pressure in cases where there are unjust punitive damages awards. Because settlements can be characterized as “compensatory” and tax-deductible while court-ordered judgments cannot, trial lawyers will be able to use the tax differential to discourage defendants from seeking appellate review. So one cannot expect very much tax revenue from this: “punitive damages” will drop precipitously, but money going to trial lawyers will go up. Moreover, appellate courts will have fewer opportunities to correct bad decisions by trial courts, creating more uncertainty in litigation, which raises litigation expenses because it will be harder to predict outcomes.

Note that taxpayers are not subsidizing punitive damages award deductions by businesses: the income “lost” because a defendant deducted the punitive damages award will be income realized by the plaintiff and his or her attorney. If the deduction is forbidden, the government will be, in effect, double-taxing the same money.

The Obama administration makes much of its claim of being pragmatic, rather than ideological, but this looks like an indirect giveaway to the trial bar rather than a source of government revenue. More: Walter at Point of Law; and my shining mug quoted at the Southeast Texas Record.

Filed under: Barack Obama, politics, punitive damages, taxes, Ted Frank, trial lawyer earmarks